KARAT PACKAGING INC (KRT) Stock Fundamental Analysis
NASDAQ:KRT - Nasdaq - US48563L1017 - Common Stock - Currency: USD
KRT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Trading Companies & Distributors industry. KRT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KRT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KRT had positive earnings in the past year.
In the past year KRT had a positive cash flow from operations.
Each year in the past 5 years KRT has been profitable.
In the past 5 years KRT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.68%, KRT belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
KRT's Return On Equity of 19.71% is fine compared to the rest of the industry. KRT outperforms 75.51% of its industry peers.
KRT has a better Return On Invested Capital (11.60%) than 79.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KRT is above the industry average of 9.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 19.71% | ||
| ROIC | 11.6% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
1.3 Margins
The Profit Margin of KRT (7.02%) is better than 77.55% of its industry peers.
KRT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.88%, KRT is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
In the last couple of years the Operating Margin of KRT has grown nicely.
KRT's Gross Margin of 38.89% is fine compared to the rest of the industry. KRT outperforms 67.35% of its industry peers.
In the last couple of years the Gross Margin of KRT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.88% | ||
| PM (TTM) | 7.02% | ||
| GM | 38.89% |
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KRT is still creating some value.
Compared to 1 year ago, KRT has more shares outstanding
KRT has more shares outstanding than it did 5 years ago.
KRT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.68 indicates that KRT is not in any danger for bankruptcy at the moment.
KRT's Altman-Z score of 4.68 is fine compared to the rest of the industry. KRT outperforms 71.43% of its industry peers.
The Debt to FCF ratio of KRT is 1.00, which is an excellent value as it means it would take KRT, only 1.00 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.00, KRT belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
KRT has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
KRT's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. KRT outperforms 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.68 |
ROIC/WACC1.17
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.86 indicates that KRT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.86, KRT is doing good in the industry, outperforming 75.51% of the companies in the same industry.
A Quick Ratio of 1.53 indicates that KRT should not have too much problems paying its short term obligations.
KRT has a better Quick ratio (1.53) than 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
KRT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.22%.
Measured over the past years, KRT shows a very strong growth in Earnings Per Share. The EPS has been growing by 75.29% on average per year.
KRT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.23%.
The Revenue has been growing by 13.45% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.22%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%-17.5%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%8.38%
3.2 Future
KRT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.15% yearly.
KRT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y-0.84%
EPS Next 2Y4.97%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year9.46%
Revenue Next 2Y7.97%
Revenue Next 3Y8.05%
Revenue Next 5Y5.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KRT is valuated rather expensively with a Price/Earnings ratio of 18.35.
Based on the Price/Earnings ratio, KRT is valued a bit cheaper than 67.35% of the companies in the same industry.
KRT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 15.95, the valuation of KRT can be described as correct.
Based on the Price/Forward Earnings ratio, KRT is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. KRT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRT is valued a bit cheaper than 73.47% of the companies in the same industry.
87.76% of the companies in the same industry are more expensive than KRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
The excellent profitability rating of KRT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y4.97%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
KRT has a Yearly Dividend Yield of 5.99%, which is a nice return.
Compared to an average industry Dividend Yield of 3.00, KRT pays a better dividend. On top of this KRT pays more dividend than 91.84% of the companies listed in the same industry.
KRT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
5.2 History
KRT has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
124.78% of the earnings are spent on dividend by KRT. This is not a sustainable payout ratio.
DP124.78%
EPS Next 2Y4.97%
EPS Next 3Y7.15%
28.99
+0.24 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners25.99%
Inst Owner Change5.28%
Ins Owners66.34%
Ins Owner Change-12.74%
Market Cap581.54M
Analysts74.29
Price Target35.7 (23.15%)
Short Float %1.26%
Short Ratio0.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
Yearly Dividend1.55
Dividend Growth(5Y)N/A
DP124.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.42%
Min EPS beat(2)-19.5%
Max EPS beat(2)12.67%
EPS beat(4)1
Avg EPS beat(4)-8.73%
Min EPS beat(4)-19.5%
Max EPS beat(4)12.67%
EPS beat(8)3
Avg EPS beat(8)5.12%
EPS beat(12)4
Avg EPS beat(12)5.77%
EPS beat(16)7
Avg EPS beat(16)7.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.53%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)0.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)0.53%
Revenue beat(8)1
Avg Revenue beat(8)-1.69%
Revenue beat(12)1
Avg Revenue beat(12)-2.49%
Revenue beat(16)3
Avg Revenue beat(16)-1.92%
PT rev (1m)11.11%
PT rev (3m)6.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.88%
EPS NY rev (1m)-2.11%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.35 | ||
| Fwd PE | 15.95 | ||
| P/S | 1.35 | ||
| P/FCF | 12.05 | ||
| P/OCF | 11.83 | ||
| P/B | 3.79 | ||
| P/tB | 3.89 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)1.58
EY5.45%
EPS(NY)1.82
Fwd EY6.27%
FCF(TTM)2.41
FCFY8.3%
OCF(TTM)2.45
OCFY8.45%
SpS21.47
BVpS7.64
TBVpS7.45
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 19.71% | ||
| ROCE | 15.17% | ||
| ROIC | 11.6% | ||
| ROICexc | 14.93% | ||
| ROICexgc | 15.23% | ||
| OM | 8.88% | ||
| PM (TTM) | 7.02% | ||
| GM | 38.89% | ||
| FCFM | 11.21% |
ROA(3y)10.43%
ROA(5y)10.19%
ROE(3y)19%
ROE(5y)25.59%
ROIC(3y)12.65%
ROIC(5y)12.66%
ROICexc(3y)15.6%
ROICexc(5y)14.51%
ROICexgc(3y)15.92%
ROICexgc(5y)14.83%
ROCE(3y)16.55%
ROCE(5y)16.56%
ROICexcg growth 3Y16.55%
ROICexcg growth 5Y29.66%
ROICexc growth 3Y16.65%
ROICexc growth 5Y29.13%
OM growth 3Y14.76%
OM growth 5Y30.03%
PM growth 3Y7.49%
PM growth 5Y56.48%
GM growth 3Y9.52%
GM growth 5Y7.47%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 4.59% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 19.07 | ||
| Cash Conversion | 85.64% | ||
| Profit Quality | 159.74% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 4.68 |
F-Score5
WACC9.91%
ROIC/WACC1.17
Cap/Depr(3y)16.22%
Cap/Depr(5y)87%
Cap/Sales(3y)0.52%
Cap/Sales(5y)2.54%
Profit Quality(3y)142.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.22%
EPS 3Y12.14%
EPS 5Y75.29%
EPS Q2Q%-17.5%
EPS Next Y-0.84%
EPS Next 2Y4.97%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)6.23%
Revenue growth 3Y5.09%
Revenue growth 5Y13.45%
Sales Q2Q%8.38%
Revenue Next Year9.46%
Revenue Next 2Y7.97%
Revenue Next 3Y8.05%
Revenue Next 5Y5.98%
EBIT growth 1Y-8.7%
EBIT growth 3Y20.59%
EBIT growth 5Y47.51%
EBIT Next Year37.56%
EBIT Next 3Y15.75%
EBIT Next 5YN/A
FCF growth 1Y-7.54%
FCF growth 3Y118.66%
FCF growth 5YN/A
OCF growth 1Y-10.78%
OCF growth 3Y76.82%
OCF growth 5YN/A